Nov 19, 2024

Sun Silver Hits 50m @ 70g/t AgEq at Maverick Springs, Nevada

Introduction:

Sun Silver Limited (ASX: SS1) (Market Cap: $97M | Last Close: $0.70 | Cash: $13.5M ) has reported significant silver-gold intercepts from its inaugural drill program at the Maverick Springs Project in Nevada, USA, highlighted by 50m at 70g/t AgEq (43.9g/t Ag, 0.311g/t Au) from 248.41m.

Drill Results:

50.29m @ 70.3g/t AgEq (43.9g/t Ag, 0.311g/t Au) from 248.41m (220m step-out from historical drilling) [MR24-198]‍
3.05m @ 423g/t AgEq (398g/t Ag, 0.293g/t Au) from 294.13m (high-grade zone within broader intercept) [MR24-198]

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Project Overview:

The Maverick Springs Project is located 85km from Elko, Nevada in a Tier 1 mining jurisdiction. The project is surrounded by world-class gold and silver operations including Barrick's Carlin Mine. It has excellent infrastructure access being proximal to a fully serviced mining town.

The project currently hosts a JORC Inferred Mineral Resource of 195.7Mt grading 40.25g/t Ag and 0.32g/t Au for 253.3Moz of contained silver and 2.0Moz of contained gold (423Moz AgEq). The deposit remains open along strike and at depth.

Program Details:

Sun Silver's inaugural 7,500m drill program is focused on the north-western area of the property beyond the current Mineral Resource boundary. The latest results from hole MR24-198 represent a 220m step-out from historical drilling, confirming thick mineralization continues outside the existing resource. Antimony mineralization continues to be intercepted, with values up to 615.73 ppm Sb encountered.

Understanding These Results:

The reported intercepts are significantly higher-grade and thicker than the current Mineral Resource average in the north-west zone. This suggests potential for resource growth and grade improvement in future updates.

The 50m intercept grading 70g/t AgEq demonstrates substantial width and grade, while the included high-grade zone of 3.05m at 423g/t AgEq highlights the presence of bonanza-grade mineralization within the broader system. The antimony values, while not included in the AgEq calculations, represent potential for additional value.

Management Commentary:

Gerard O'Donovan, Sun Silver Executive Director:

“Our lab results continue to deliver consistently higher-grade and thicker intercepts than the current Mineral Resource average in the north-west zone.”

“This bodes well for future drilling and is expected to make a significant contribution towards a revised Mineral Resource Estimate in the near future.”

Next Steps & Catalysts:

Sun Silver is awaiting further assay results from the ongoing drill program. These will be incorporated into an updated Mineral Resource Estimate, which is targeted for completion early next year.

The company plans to continue exploration drilling to further expand the resource potential, with a particular focus on the newly confirmed north-western extension area.

Commodity Outlook:

Silver and gold prices remain robust, with recent spot prices of US$31.20/oz for silver and US$2,650/oz for gold. Nevada's status as the #1 ranked mining jurisdiction globally (Fraser Institute, 2022) provides a favorable operating environment for project development.

Conclusion:

Sun Silver's latest drill results from Maverick Springs demonstrate significant potential to expand the current resource base, particularly to the north-west. The thick, high-grade intercepts outside the existing Mineral Resource area bode well for future growth. With an updated resource estimate planned and ongoing exploration, Maverick Springs is emerging as a notable silver-gold project in a premier mining jurisdiction.

Sources:

SS1 Drill Results Announcement

Additional Figures:

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Nov 1, 2024